Monday, Jan. 21: Amid talk of a U.S. recession, the Asian foreign markets plummet in value. Tuesday, Jan. 22: U.S. markets open in a precipitous downswing, but with U.S. Federal Reserve's unanticipated interest rate cut, the market scrambles to recover. Wednesday, Jan. 23: Asian shares rise, but European stocks drop.

What is a person supposed to do? Specifically, what should Cornell staff and faculty do about their retirement funds?

The short answer: Don't panic.

"The markets have been volatile since reaching a high in October 2007," said Mary Zielinski, assistant director and manager of retirement programs in Cornell's Benefit Services' office. "There are a lot of uncertainties -- the long-term effects of the housing market, the possibility of a recession, the nearing national election -- that make it hard to look into the crystal ball and foretell the future.

"Rather than reacting to the nightly news, people should take this time to become more educated about their own financial situation and needs. Review your retirement fund allocations with a TIAA-CREF, Fidelity, ING, MetLife or AIG consultant to make sure that they are diversified. Do some short- and long-term planning of your upcoming expenses, needs and income. And, if you are the right age, go to the retirement seminars that we offer to all those over age 50."

Paul Bursic, director of Benefit Services, agreed: "All of the swings in the market are just on paper, so to speak, until you act on them. You haven't actually incurred a potential loss in your retirement savings accounts until you exchange funds in your account. If you are properly allocated for growth and stability, these market swings will not affect you nearly as much as a person who trades frequently to beat the market."

So, for some people, just waiting and riding out the market until things settle again may be the right move. Zielinski explained, "It helps to make sure you have a balanced and diversified portfolio, because then, regardless of what the market does, something is bound to do well. Employees should create a strategic plan with a position to survive volatility and stick to that plan."

The timeframe a person is working with also should be re-examined every few years. "If you have a longer timeframe -- if you are young or you don't plan on drawing from some of these funds in retirement for some years yet -- investing in stocks that have dropped in value allows you to purchase more of them; if they are basically solid funds, they should recover, and when they do, their value to you will also rise," Zielinski pointed out.

Those with a shorter timeframe will want to take into account that they may not be able to wait until their funds recover, and they may not be able to absorb significant losses in value of a particular fund, either.

"Do you have time enough to build your investments back up again, or should your main focus be on protecting what you already have?" Zielinski asked.

Bursic noted that investing according to a person's stage in life is one of the reasons TIAA-CREF and Fidelity offer "lifecycle" funds: "Lifecycle funds automatically rebalance your portfolio as you move closer to retirement. When you are young, they have a high percentage of stocks to maximize the growth of your investment, and as you age, they shift to a greater percentage of bonds and lower-growth vehicles to stabilize the total value of your investments. Even the U.S. Department of Labor now officially recognizes lifecycle funds as a preferred investment alternative for longer-term retirement accounts."

Those who want a more hands-on approach can balance and rebalance their own mix of funds by shifting the percentages of their holdings in annuities (such as TIAA Traditional), stocks, bonds, real estate and money market accounts.

"With the options that are now available to Cornell staff and faculty in TIAA-CREF, Fidelity and -- for contract college employees -- ING, MetLife and AIG, you can put together a mix of investments that is right for the amount of risk you are willing to take on, your age and future expected earnings and your needs going forward," said Bursic.

He noted that regardless of whether the stock market is stable or volatile, staff and faculty members owe it to themselves to do some solid financial planning every few years, if not annually.

"Because of the tax relief and the effects of compounding interest, you want to start adding to your tax-deferred account early in your career, even if you start with a very modest amount," Bursic said. "For guidance, make an appointment to talk with one of the TIAA-CREF, Fidelity, MetLife, AIG or ING consultants, or with our Benefit Services staff. And remember that your investments for retirement are for the long term: Unless you are very, very lucky, there is no get-rich-quick solution."

To set up a personal appointment with an investment firm representative, contact:

AIG VALIC: (800) 892-5558, ext. 88174.

Fidelity Investments: (800) 642-7131; Tuesday appointments in Day Hall.

ING (contract colleges only): (888) 883-6320; Tuesdays at the Vet School.

MetLife: (315) 521-1830. For more information call 273-7341 (Ithaca) or (315) 781-8603 (Geneva).

TIAA-CREF: (877) 209-3144; Wednesday and Thursday appointments in Day Hall.

You can also contact Benefit Services, 130 Day Hall, (607) 255-3936, e-mail: benefits@cornell.edu, for guidance on how to establish a tax-deferred annuity plan through Cornell, for general retirement planning information or for help in changing the amount that you have withdrawn from your paycheck for your retirement accounts.